Columbian Announces Price Increase On North American Rubber Carbon Black Grades

Columbian Chemicals Company today announced a price increase of approximately 19 percent for grades of rubber carbon black sold in North America, effective March 15. The increase was precipitated by continued significant cost increases for raw materials and the need to remain a healthy business partner for customers that depend on Columbian`s value-added products and services.

“Columbian continues to work on cost reductions and productivity enhancements, and to a large degree this has minimized the need to pass along rising raw material costs,” said James P. Berresse, President of Columbian Chemicals. “Unfortunately, raw material costs have escalated to the point that we no longer can absorb these increases in their entirety -- the marketplace must share this burden.”

Feedstock costs, which already were near historic highs at the end of 2002, have continued to rise during the first quarter of 2003 as reaction to the ongoing oil workers` strike in Venezuela and speculation over a possible war with Iraq.

“This is a specialty chemicals business, and our customers need differentiated products and services,” said Dietmar Voss, Columbian`s Senior Vice President of Worldwide Sales and Marketing. “Going forward, we want to partner with our customers to better understand their business and help develop products that will differentiate them from their competitors and drive profitability. But, obviously, we have to remain a viable business to make that happen.”

Columbian Chemicals is one of the world`s leading producers of carbon black – an engineered material that improves the strength, durability and overall performance of a range of products including tires and other mechanical rubber goods, as well as inks, paints, plastics and coatings.

Based in Marietta, Georgia, Columbian Chemicals is a subsidiary of Phelps Dodge Corporation, the world`s second-largest copper company. Columbian Chemicals owns and operates 12 carbon black manufacturing facilities in Brazil, Canada, England, Germany, Hungary, Italy, Korea, Spain and the United States.

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